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European Markets Decline
Amid Slipping Euro, Techs

LONDON -- European shares finished lower Wednesday, with investor sentiment hurt further after the euro hit a fresh low earlier in the day.

After falling to its fresh low of 82.91 U.S. cents late Wednesday morning, the euro was trading at 83.01 cents in the afternoon, well below 83.68 cents quoted late in New York Tuesday.

The Dow Jones Euro Stoxx Index, which tracks companies in countries that joined the single currency, closed down 2.66 points at 412.79. The Dow Jones Euro Stoxx 50 Index was down 37.9 points at 4993.1.

Technology shares retreated in the wake of disappointing earnings from
Nortel Networks
, the world's second-largest telecommunications-equipment manufacturer. The Canadian company reported late Tuesday its operating profit totaled $574 million, slightly exceeding expectations, but that its sales were slowing, due to problems with installing ordered equipment.

Nortel's European peers fell. In Paris,
Alcatel
dropped 6.5 euros to 74.4 euros.
Bookham Technology
led decliners in London after falling 371 pence, or 13.3%, to 24.2 pounds, while
Marconi
retreated 74 pence, or 7.8%, to 876 pence.

However, Dresdner Kleinwort Benson said the companies offer good value at current levels. It raised Alcatel to "buy" from "hold," giving it a price target of 125 euros. It initiated coverage of Marconi at "buy" with a price target of 10.90 pounds.

Shares in computer-services companies fell after Commerzbank issued a series of downgrades. Shares of
Cap Gemini-Ernst&Young
, Europe's top computer-service company, were downgraded to "accumulate" from "buy";
CMG
was downgraded to "hold" from "accumulate" and
Sema Group
was downgraded to "reduce" from "hold."

AstraZeneca
fell after its nine-months pretax profit rose 13% to $3.43 billion , which was at the lower end of expectations. The Anglo-Swedish pharmaceutical company warned that it wouldn't meet its double-digit sales growth target, due to slower sales of its leading ulcer drug Prilosec/Losec. In London, its shares fell 80 pence, or 2.5%, to 31.7 pounds, while in Stockholm its shares dropped 15 Swedish kronor, or 3.1%, to 464 kronor.

European Aeronautical Defense & Space
gained after reporting its first-half operating profit hit 553 million euros, higher than expected. The aerospace company, which was created by the merger of Aerospatiale Matra in France, DaimlerChrysler Aerospace in Germany and Casa in Spain, did not provide year-ago figures because of the complexity of combining the information from the three companies. EADS shares, which are traded in all three countries, gained 65 European cents to 21.8 euros in Paris.

Swiss conglomerate
ABB
reported that its nine-month profit rose 13% to $1.25 billion, up from $1.11 billion a year earlier and in line with expectations. The strong earnings report was overshadowed by news that its Chief Executive Gordon Lindahl will step down at the beginning of 2001 and that the company postponed its U.S. listing because of adverse market conditions. Its shares fell 12.3 Swiss francs, or 7.4%, to 153.8 francs.

Volvo
fell in Stockholm after warning that truck sales in both Europe and North America will decline, with sales in North America already falling 31% this year. The auto maker also reported that its nine-month earnings totaled 4.86 billion Swedish kronor, below expectations of 5.32 billion kronor. Its shares dropped 1.5 kronor to 143 kronor.

In economic news, September import prices in Germany surged 2.3% from August, more than double the forecast of 1%, and due to a 17.3% increase in petroleum products. From a year earlier, import prices shot up 13.4%, higher than the 11.8% rise forecast.

Business confidence in the United Kingdom fell for the third time in a row, with the weak euro hurting exports, according to a survey by the Confederation of Business Industry.